Stanford asks court to thaw assetsDenying wrongdoing, financier tells federal judge he has no money to hire a lawyer

The Texas financier at the center of the alleged $8 billion Stanford Financial fraud denies any wrongdoing and wants the judge in his case to thaw his assets so he can hire a lawyer.

R. Allen Stanford, 59, repeatedly denied the Securities and Exchange Commission’s civil allegations without elaboration in a court filing made public today.

He asked in the filing that U.S. District Judge David Godbey order court-appointed receiver Ralph Janvey, a Dallas lawyer, to release his seized assets and money, which have been frozen as per a judge’s order since the SEC filed its complaint more than a month ago.

Stanford also blamed Janvey for his financial predicament. He said he filed the answer without a lawyer “because I, R. Allen Stanford, have been unable to retain counsel due to all of my assets and money having been seized by the actions of the court-appointed receiver Ralph Janvey.”

In addition, he challenged the SEC’s choice to file the complaint in Dallas rather than Houston, noting that his “home office and one of his residences” is in Houston, so the case should be filed here.

Stanford is a citizen of both the U.S. and Antigua, the Caribbean island where his offshore bank, Stanford International Bank, is located.

He is staying in Virginia, said Houston attorney Dick DeGuerin, who has spoken with Stanford about representing him. Before the complaint was filed, a company spokesman said he lived in St. Croix and spent little time in Houston. Last week, Stanford came to Houston to meet with DeGuerin and others.

However, in the filing dated March 25 and sent to SEC in Fort Worth via certified mail, Stanford asks that further filings in the case be sent to him in care of J.D. “Bucky” Allshouse, a renowned Houston divorce lawyer with many wealthy clients. Allshouse said Tuesday he has been representing Stanford in his divorce, which was filed by Stanford’s wife, Susan, in 2007. He also said he is happy to accept the SEC case-related paperwork, but he is not representing Stanford in that case.

DeGuerin said Tuesday that Stanford needed to get some response on the record in the SEC case, even if it was simply a general denial.

“This is a massive case with lots of facts. When the injunction was signed he wasn’t present and didn’t have notice that the lawyer who made an appearance (for him) was going to withdraw,” DeGuerin said.

He said it is unfair for Stanford to be without means to hire a lawyer for the SEC proceedings and there is precedent for a receiver to set aside funds for legal fees.

Stanford was the sole shareholder in the privately-held international network of brokerages headquartered in Houston, as well as the bank, until the SEC filed its complaint last month. A judge also froze all assets of named defendants, the brokerage and the bank, leaving investors frantic for their money.

The SEC alleges Stanford and former finance chief James Davis ran a “massive Ponzi scheme” and misappropriated at least $1.6 billion.

The SEC also alleges Laura Pendergest-Holt, the former chief investment officer, facilitated the scheme by misrepresenting to investors that she managed a multibillion-dollar portfolio at the bank.